Put Your RRSP to Work Right Now

It's worth taking the time to learn about Registered Retirement Savings Plans.

Although RRSPs exist to encourage Canadians to save for retirement, the government does allow pre-retirement withdrawals for specific purposes.

RRSP Basics

When you contribute to an RRSP, you are deferring income taxes while saving for your retirement. These days, because people are concerned about the government's future participation in pension plans, the RRSP is a solution that everyone should consider.



Move In On a Home Buyer's Plan

The Home Buyer's Plan (HBP) allows first-time homebuyers or persons who have not been homeowners for five years to withdraw funds from their RRSP to purchase a home, with no income tax payable on the amount withdrawn.

Maximum Withdrawal

A maximum of $25,000 may be withdrawn.

Qualifying Home

To qualify for an HBP, the home must be:

  • located in Canada;
  • purchased or built by October 1 of the calendar year in which the RRSP withdrawal is made;
  • intended as your principal place of residence no later than one year after buying or building the home.

Repaying the Withdrawals

The amounts withdrawn under an HBP must be repaid over a 15-year period as of the second calendar year following the withdrawal. Each year you have to repay 1/15 of the total amount you withdrew. The repayments are not considered to be contributions to your RRSP and are not tax deductible.


Back-To-School With an LLP

The Lifelong Learning Plan (LLP) allows you to withdraw funds from your RRSP to finance training or education programs, with no income tax payable on the amount withdrawn.

Maximum Withdrawal

The maximum withdrawal is $10,000 per year, up to a total of $20,000 over a four-year period.

Qualifying Educational Programs

Any educational program offered by a designated educational institution (university or college) that lasts three consecutive months or more and requires students to spend 10 hours or more per week on courses or work in the program.

Repaying the Withdrawals

You have to pay back the money to your RRSP over a 10-year period, beginning the earlier of:

  • the fifth calendar year after your first withdrawal under the LLP
  • the second consecutive year in which you did not claim the education amount on your tax return for at least three months